Tuesday, July 14, 2015

Smart Money Went Long USD 5 Billion in S&P 500 Index Futures Last Week = 3rd Highest of Current Bull Market

The indicator is simply the difference in "Smart Money" confidence versus "Dumb Money" Confidence. If the Dumb Money
Confidence is at 100%, then that means that these bad market timers are supremely confident in a market rally. And
history suggests that when these traders are confident, we should be very, very worried that the market is about to
decline. When the Dumb Money Confidence is at 0%, then from a contrary perspective we should be [buying stocks],
expecting these traders to be wrong again and the market to rally. Buying the market the day this indicator flashes
green, and simply holding long for three months, makes money 95% of the time (Jason Goepfert ‏@sentimentrader).